Dáil Éireann Debate, Wednesday - 28 June 2023
49. Deputy Jennifer Whitmore asked the Minister for Finance if any provisions are in place for people with life-long illnesses who have been declined mortgages despite financial capacity because their life-long illness precludes them from obtaining mortgage protection insurance; and if he will make a statement on the matter. [31523/23]
View answerAt the outset, it is important to note that neither I, nor the Central Bank of Ireland, can intervene in the provision or pricing of insurance products, nor can we compel any insurer operating in the Irish market to provide cover to specific individuals or businesses. This position is reinforced by the EU framework for insurance companies (the Solvency II Directive).
Notwithstanding this, I am aware of the issue of access to mortgage protection insurance for individuals with historic or underlying health conditions, in the context of seeking to buy a home. This is a very sensitive matter for many in our community.
In such circumstances, there is a provision under Section 126 of the Consumer Credit Act 1995, whereby lenders can provide a mortgage in situations where a borrower may be unable to obtain life insurance, or where such insurance is unduly costly compared to that payable by borrowers generally. For individuals, including those with historic or underlying health conditions, who may experience difficulties acquiring mortgage protection insurance when securing a home loan, this is an important provision to be aware of and to discuss with their lender.
My Department previously consulted the Banking and Payments Federation Ireland (BPFI) on the provision of such “waivers”. It indicated that it estimates that, on an annual basis, 2 per cent of mortgage approvals to consumers have been granted a waiver, and 0.05 per cent of mortgage applications approved by its members did not proceed to drawdown due to a lack of mortgage protection insurance.
For those who have experienced difficulty acquiring life cover due to a pre-existing illness, it may also interest the Deputy to know that Brokers Ireland has published a register containing contact details of Brokers who have experience in advising on life cover in this area. This is available on the Brokers Ireland website: brokersireland.ie/life-cover-pre-existing-illnesses/. In addition, Insurance Ireland operates an Insurance Information Service for those who have queries, complaints or difficulties in relation to obtaining insurance, which can be accessed by ringing 01-676-1820 or at feedback@insuranceireland.eu.
